CTV, Global urge CRTC to resist temptation to alter fledgling TV policy

CTV Inc and Global Television Network are urging the CRTC to stick by its new television policy and ignore requests by some interest groups to up the amount of Canadian content on the airwaves (PN 2001-3). In her wrap up Wednesday on the last of a seven-day hearing into the licence renewal of both networks, CTV president and COO Trina McQueen told the commission, "Certainty is a cornerstone of the new framework… Completely re-writing the TV policy, just seven months after its introduction, destroys this certainty and discards the best efforts of the commission and the industry." Global unloads properties as hearings get underwayCanWest Global Communications Corp plans to sell its 50% interest in business specialty channel ROBTv for about $30 million in cash to Thomson Canada Ltd, which will transfer ownership to CTV’s parent company, Bell Globemedia. CanWest president and CEO Leonard Asper also announced Global’s plans to launch a digital specialty channel, Financial Post TV, this October. The new channel will tap into the business news and analysis resources of Global’s television stations and the National Post, he said. The Competition Bureau asked Global to sell off its interest in ROBTv after it took over the newspaper and Internet assets of Hollinger International Inc. Global will also sell its 70% interest in Montreal television station CFCF to Bell Globemedia for $90 million. The CRTC ordered Global to sell CFCF after it acquired eight television stations previously owned by WIC Western International Communications Inc, leaving it with two stations in Montreal. The announcements were made on the opening day of pivotal licence renewal hearings for CTV and Global. A few days earlier, it was announced that Global’s Vancouver television station (CKVU-TV) would be sold to Chum Ltd for $125 million in cash. The CRTC ordered Global to sell off that station also as a result of the WIC deal. Meanwhile, CTV Inc reached an agreement to buy CKY-TV of Manitoba from Moffat Communications Ltd for $37 million. It will be the first network-owned television station in Manitoba for CTV. The transactions are subject to CRTC approval.CanWest Global Communications Corp president and CEO Leonard Asper agreed that, "The principle of changing the television policy, we think, is not right." But various organizations say times have changed. Released in June 1999, the policy gives the large private networks some flexibility in how they air the requisite eight hours of Canadian priority programming between 7 p.m. and 11 p.m. each week. On the first day of the hearings, CRTC vice chair of broadcasting Andree Wylie questioned whether an intended effect of the TV policy was CTV’s ghettoization of much of its Canadian programming on Saturdays, when viewership is lower, while not airing any home-grown shows on three weekdays. Both networks have grown considerably through consolidation since they last appeared before the CRTC for licence renewal. Global Television, with 19 stations up for renewal, reaches over 94 per cent of English Canada. It has picked up independent stations in Hamilton, Victoria and Montreal, and the newspaper and Internet assets of Hollinger International. The 31 conventional television stations belonging to CTV that are up for renewal reach over 99 per cent of English Canada. Last year, CTV was acquired by phone giant BCE Inc, which owns direct-to-home satellite distributor Bell ExpressVu. Through BCE, CTV is also affiliated with the Internet portal Sympatico-Lycos and the national daily The Globe and Mail. Considering how much CTV and Global have grown, some groups say it’s time they anted up more in Canadian content. Gary Neil, policy advisor for the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), says both networks should be required to carry at least 50 per cent Canadian content between 7 p.m and 11 p.m., beginning in year three of the new licence term. But Global points out that private networks are at a disadvantage because, unlike the Canadian Broadcasting Corp and specialty channels, they rely on only one source of revenue – advertising. In comparison, CBC receives federal funding and tops this up with advertising, while specialty networks earn revenue from both commercials and subscriber fees. The solution, Global argues, lies in averaging out the current 12-minutes-per-hour of advertising, which would allow the network to run 14 hours of commercials during prime time and less during non-peak hours. CTV opposes an increase in advertising, saying it would amount to a change in the television policy. But McQueen, says that if Global does get more advertising time than CTV should too. Asper said since the TV policy hearings, $160 million of advertising has gone into specialty television on an annual basis, while convention television has been flat. He told CCR, "We think there is an anomaly in the regulations that affect television broadcasters of specialty that allows for an exception in the change of the policy." He points out that specialty channels are able to deal with advertising issues without re-opening the television policy because their advertising rules are part of their licences. Every time their licences come up for renewal, Asper says they can apply for an increase. Groups like the Directors Guild of Canada say any policy changes should put an onus on the two networks in terms of Canadian content. The Guild wants the eight-hour priority programming requirement upped to 8.5 hours by 2002 and to nine hours by 2006. It also recommends that 70 per cent of priority programming be drama. Another suggestion being rejected outright by both networks is that the licence term be shortened from seven to two or three years, so that the CRTC can make any necessary adjustments if the TV policy fails to live up to expectations. The Canadian Conference of the Arts (CCA) says short-term renewals are necessary because both networks have been vague about where their convergence models are heading. "CTV and Global have the money, but haven’t shared their plans," said CCA national director Megan Williams. "They should come back in one or two years when they have a better idea of what they’ll be doing with the airwaves that Canadians own." The CCA also wants the two networks to increase their Canadian content quotas during the evenings from 50 per cent to 60 per cent over the next two years. "To be perfectly blunt, we think it odd that in describing their commitment to Canadian programming, neither CTV nor Global has mentioned their even greater commitment to non-Canadian programming," she said. Codes of conduct CTV and Global spent much of the week fending off attempts to have codes of conduct imposed on them that would ensure the editorial separation of the television and print newsrooms under their control. Brass from both networks rejected outright any suggestions that they be held to a stringent code filed last month by publishing giant Quebecor Inc, which was seeking a licence renewal for TVA. That code forbids reporters in its print news rooms from speaking to those at TVA. Eventually, Global and CTV filed virtually identical statements of principles and practices on the importance of diversity of voices in the context of commonly owned media. The statement commits Global and CTV to maintaining their own management structure for their television operations, distinct and separate from their affiliated newspaper holdings. As well, news managers at their broadcast operations will not sit on the editorial boards of affiliated newspapers. They also committed to establishing internal mechanisms for dealing with complaints arising from collusion between the newspaper and broadcast sides, and to report back to the CRTC on an annual basis.

CTV, Global urge CRTC to resist temptation to alter fledgling TV policy

Broadcast | April 26, 2001

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